Riot Platforms has modified its $200 million credit agreement with Coinbase Credit, replacing the variable interest rate with a fixed one to enhance cost predictability. This development comes as the company continues to decrease its bitcoin holdings, now at 15,680 BTC, down from 19,368 at the start of the year.
The revised agreement retains the original loan size and collateral structure, with Riot's bitcoin, USDC, and cash held in Coinbase Custody serving as security. The loan maturity has been extended by nearly a year, with the option for a further extension, subject to lender approval. However, the loan operates under a tiered loan-to-value framework, where collateral top-ups are required if the LTV exceeds 70%, and liquidation occurs at 80%. This could lead to further depletion of Riot's bitcoin treasury if the cryptocurrency's price continues to decline, potentially funding the company's pivot into artificial intelligence and high-performance computing infrastructure.
Riot's shares have fallen around 9% to below $17, with the company set to report its Q1 earnings on April 30.